And they're back to boogie some more. Executives from all of the top 25, pre-meltdown subprime lenders are back in the mortgage business today via The Center for Public Integrity.
The Center for Public Integrity in 2009 identified the top 25 lenders by subprime loan production from 2005 through 2007. Today, senior executives from all 25 of those companies or companies that they swallowed up before the crash are back in the mortgage business. Most of these newer “non-bank” lenders are making or collecting on loans that may be too risky to qualify for backing by the U.S. government. As the industry regains its footing, these specialty lenders represent a small but growing portion of the market.
The Federal Housing Administration must tap $1.7 billion in taxpayer money at the end of the month to cover its losses — a first for an agency that has been self-sustaining since its creation in 1934. [my emphasis]
FHA officials have maintained that rogue lenders with aggressive lending tactics migrated to the FHA after the subprime market collapsed, attracting borrowers with unusually poor credit histories to the agency’s books in 2007, 2008 and early 2009.
And yet, no Government official has been sent to prison for allowing this to occur, nor have any of the Government or corporate perpetrators behind the subprime crisis and the Great Recession. It's like free reign in this country to continue leaving the taxpayer holding the bag. It's corporate welfare at it's highest achievement.
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ReplyDeleteAnd they're back to boogie some more. Executives from all of the top 25, pre-meltdown subprime lenders are back in the mortgage business today via The Center for Public Integrity.
ReplyDeleteThe Center for Public Integrity in 2009 identified the top 25 lenders by subprime loan production from 2005 through 2007. Today, senior executives from all 25 of those companies or companies that they swallowed up before the crash are back in the mortgage business. Most of these newer “non-bank” lenders are making or collecting on loans that may be too risky to qualify for backing by the U.S. government. As the industry regains its footing, these specialty lenders represent a small but growing portion of the market.
The Federal Housing Administration must tap $1.7 billion in taxpayer money at the end of the month to cover its losses — a first for an agency that has been self-sustaining since its creation in 1934. [my emphasis]
ReplyDeleteFHA officials have maintained that rogue lenders with aggressive lending tactics migrated to the FHA after the subprime market collapsed, attracting borrowers with unusually poor credit histories to the agency’s books in 2007, 2008 and early 2009.
And yet, no Government official has been sent to prison for allowing this to occur, nor have any of the Government or corporate perpetrators behind the subprime crisis and the Great Recession. It's like free reign in this country to continue leaving the taxpayer holding the bag. It's corporate welfare at it's highest achievement.
Read more at - WaPo: FHA needs $1.7 billion taxpayer subsidy